"In the first half of 2025, coke prices continued to decline. By the end of June, the spot market had recorded ten rounds of decline, reaching a recent low. However, driven by the introduction of anti-involutionary policies in July and documents such as the investigation of overproduction in coal mines, prices of both coke and coke rebounded rapidly. To date, coke prices have seen seven rounds of price increases."
Before mid-July, coke companies faced the dual squeeze of rising costs and falling prices, with most coke plants incurring significant losses. However, after seven consecutive rounds of coke price increases, coke prices in the Shanxi market rebounded. For example, in August, as upstream coking coal prices stabilized, coke prices continued to rise, supported by strong supply and demand fundamentals, further restoring coke plant profits.
Analysts revealed that after seven rounds of price increases, major coke companies proposed an eighth round of price increases on August 25th, but major steel companies did not respond, and traders began to fear rising prices. The current price increases in coking coal and coke have been transmitted to production costs, driving up steel prices in tandem.
After this significant price increase, is there further room for coke prices to rise?
September and October are peak seasons for infrastructure construction, and manufacturing demand for inventory replenishment is concentrated. Terminal orders saw some improvement in late August. Driven by positive macroeconomic factors, rising expectations for demand recovery, and continued supply tightening, demand for coke remained strong in September and October.